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Updated over 7 years ago,
What to bring to the bank for the loan process
I am going to meet with the bank this week to ask about getting a loan on another house. I need to know how I should organize my paperwork and what they want to see.
Here is a little background on my situation. While I am not "Just starting out", I really fell into owning a rental several years ago because I could not sell my home and moved to a new one. Now that I've had that home for a number of years, I would like to repeat the process. I need a bigger home for my family, but I would like to keep my current home as a rental as well.
My first home was tiny and I have about $70,000 in equity (house is only valued around $90,000). This is currently a rental home. I make a little profit on this, and the payments are tiny). I have a job that generates enough income for me right now and this rental home is just a tiny bit of side income.
My current residence is valued somewhere around $210,000 but I still owe about $180,000 on it.
I've got an opportunity to buy a bigger home than my own for a pretty good deal. It will end up being similar in price to my current residence. We will be meeting with a banker this week to ask about options for us in order to get into this new home and rent out our current home. If we were just selling, this would be easy, but since we want to keep the house as a rental, I want to go in prepared to the bank and put the best foot forward.
What information should I bring to the bank and how should I lay it out and preset it? I really appreciate advice from someone who has done this recently. Thank you all for your input.