Conventional financing for investment property process.

[Jason T.]

Hi all, I have some questions regarding applying for conventional financing for an investment property.

Is it common to be asked for all bank account statements, other investment accounts, and retirement accounts? Are they necessary? What about all the account numbers? 

I understand being ask for primary bank statement and tax returns/w2 and pay stubs, but aren't these pretty much enough?

Also what about being ask for primary residence rental contract? Is this common and can you choose not to provide some of the documents?

Some of the statements being ask for seems too invasive, and doesn't seem to have any bearing to getting the approve, ex. you can't really draw money out of retirement account easily, am I right?

[Chris Mason]

Originally posted by @Jason T.:

Hi all, I have some questions regarding applying for conventional financing for an investment property.

Is it common to be asked for all bank account statements, other investment accounts, and retirement accounts? Are they necessary? What about all the account numbers? 

I understand being ask for primary bank statement and tax returns/w2 and pay stubs, but aren't these pretty much enough?

Also what about being ask for primary residence rental contract? Is this common and can you choose not to provide some of the documents?

Some of the statements being ask for seems too invasive, and doesn't seem to have any bearing to getting the approve, ex. you can't really draw money out of retirement account easily, am I right?

I usually ask REI for bank statements with all down payment funds, and their strongest retirement account to document "PITI reserves." I don't honestly want to look at "all" of your bank accounts, heh.

Some FTHB that have $5k here, $10k there, $7k there, bla bla bla, yeah you unfortunately have to ask them for literally all of their bank accounts. They've never played the 'sourcing large deposits' game. I actually have a first time investor now with all of the down payment funds in their wife's account, and they don't want wife on the mortgage. No down payment gifts for investment properties, but all his money is in someone else's name. Whoops.

Departing residence rental income, we do not require the lease at the preapproval stage, no. Unless you have a time machine and a crystal ball telling you when your offer will be accepted, you probably can't even produce that, so it would be nonsensical to ask.