How to get prequalified - a catch 22

[Steven J.]

I've hit a catch 22. There is a four plex I'm hoping to have access to and to verify numbers on but the owner has asked all potential buyers be serious buyers who have prequalification. I can't get prequalified because I don't have the down payment. To get the down payment I need a partner but can I get a partner when I can't verify numbers yet? My options so far are as follows:

- partner with a family member who gifts me the down payment while I property manage. How do I make this a secure investment for them since its a gift? I did get some of the 'grey' advice that I can have a private note that isn't reported to the credit bureaus that I happen to forget about when I apply for the loan.

- partner with another investor who supplies the down payment while I do the property management. How do I get them involved when I can't get numbers verified? Just make it part of the deal that I structure it? How do I prove I can do any of that!?!?

AHHh.... I'd love advice!

[Daren H.]

To get prequalified most lenders are not going to require hard proof of down payment funds. When I first started out I spoke to a lot of lenders and prequalifications were handed out after a 15-20 minute phone conversation just based on what I told them about me. Prequalifications are worthless as others have stated. Just call some other banks and don't volunteer that you don't have the down payment funds. In my case, after I compared the various lender products and fees, I narrowed down my selection and got pre-approved. You should get pre-approved regardless. It would be terrible to get a contract accepted only to find out your lender cannot approve you for the loan even though they prequalified you. Good Luck Sir!