What docs you require $2k mo rental, newly self emp apl 800 score

Question

if you were leasing a property for $2k a month  and your "previously employed" but as of this year , "self employed" applicant with an verified 800 credit score applies, what documentation would you require. They put $8,000 as monthly income on application. Also, they have never rented before , have always owned with mortgages. Credit report validates, paid as agreed, $2500/mo. No former landlord to contact) they arenew to area and want to rent for a year before purchasing again.

Don Harris · Answer

@Brandon Ingegneri good input

@Kyle Penland thanks

@Jon Klaus got it

@Jeff Rabinowitz thx

@Al Williamsontrust but verify,

Thanks all for the input from your experience.

Brandon Ingegneri · Answer

As long as they can document 2-3 months of what they state, other than the pedigree info on the application and the photo id, I would want to make sure their liabilities are on their credit report.  $8k income a month means nothing with $10K going out.

Kyle Penland · Answer

A credit score of 800 to me tells the tale..thats not something they will want to mess up.  I'd ask for proof they are paying themselves 8k a month (paycheck stubs).  To me bank statements are not something I'd be giving to anyone, landlord included.  Chances are tax returns won't reflect this if it is this new.

Jon Klaus · Answer

Bank statements and tax return.

Al Williamson · Answer

Yep, I'm all for self-employment but when it comes to your rental. Trust but verify. Their credit score won't pay the rent. You need to see proof of future funds.

Jeff Rabinowitz · Answer

If they have an income of $8k per month they should be able to back that up with bank deposits even if they don't show it on a tax return.