I'm a longtime reader/listener, but first time poster. Ive listened to all the podcasts, regularly attend the webinars, and read as much of the forums as I can. I'm working my way out of the "analysis paralysis" phase and finally moving on a property.
We are going to be meeting with a mortgage lender next week about purchasing our first property. A local 3 Unit property that we plan on house-hacking for a year or two.
I plan on putting together a binder with all necessary information on the property, as well as our financials, to present to the lender at our meeting.
- MLS Sheet of the Property
- Pictures of the Property
- A Printout of a BP Analysis sheet
- 2 Years of Tax Returns for both of us.
- 2 Months of Bank Statements
- Retirement Acct Statements
- Investment Portfolio Statements
I remember in one of the more recent podcasts, Brandon talking about putting together a binder of sorts and really impressing the lender with it. I cant find that particular podcast, and couldn't find a dedicated forum post on it.
I'm looking for some more suggestions of what to include in this binder, or other ways that I can impress the mortgage lender right off the bat. I'm self employed, so getting a mortgage isn't going to be completely straight forward for us, so we need all the help we can get!
The list you provided are typical requirements. In addition, you need about a month of two of pay stubs, and two years of tax returns. The lenders will give you a list.
You should shop around for the best rate, points, and negotiate the prices. You can negotiate a little, someone else may give you a better rate. Many don't shop around for mortgages; that practice makes no sense to me.
Read: The Mortgage Professor Blog
Read: Buying a Home: The Missing Manual by Nancy Conner to start.
In my area Seller pays for title, but consider EntitleDirect.com if you have to pay for it. You can save some serious cash. Title is where most of the abuse takes place (read the book)
Impress the lenders with a 740+ credit score, long time on your current job, and enough savings/income to pay for Capex in case of an emergency. I think the fancy presentations are more appropriate for portfolio lenders. Although, common sense dictates you should give your lender a clear package, but that should be your standard practice with everything you do while running your business.
You can finance up to 10 properties per SSN/deed. Meaning, if married, the title and mortgage should be under the same person.
Contact @Jerry Padilla -
Best of luck and congratulations on your purchase!
Thank you for the mention! Great response! I couldn't have said it better myself!