Preparing to meet with loan officers or lenders

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Preparing to meet with loan officers or lenders

Investor · Spanish Fork, UT · Member since 2016 · 4 posts · 2 votes

I am creating a portfolio to give to a few select loan officers to obtain a mortgage for a rental property. What would you include in this portfolio? I currently have 5 rental properties, working on my next one. Assuming this discussion is sort of like a job interview, I want to impress them so I can get the best rates and work with the best lending team. Any ideas or thoughts appreciated. Right now I have a sheet for each property with all of the key information and then a summery of all 5 properties. I include, Loan to Value, Cash on Cash. What else would you like to see if you were a loan officer?

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Chris MasonPro Member

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Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes

Originally posted by @Brian Holt:

Standard paperwork you know and love, and one spreadsheet that has each property in a row and the particulars (loan balance, rent, 2nd mortgage(s), etc) in the columns. Each will have their own process, roll with it.

FYI: Best lending team for a real estate investor will not necessarily have the best rate. Of the business I get from bigger pockets, a significant amount is from people that just got burned and lost their $20,000 earnest money deposit after failing to close on a house. It takes a lot of years for my $14 per month higher interest rate to add up to $20,000. None of the CFPB-required disclosures require lenders to disclose what percentage of loans they actually close, and what percent they deny 3 days before scheduled closing after all contingencies have been lifted. Talk to any real estate agent about that.

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Chris MasonPro Member
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Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
7y
Originally posted by @Brian Holt:
I am creating a portfolio to give to a few select loan officers to obtain a mortgage for a rental property. What would you include in this portfolio? I currently have 5 rental properties, working on my next one. Assuming this discussion is sort of like a job interview, I want to impress them so I can get the best rates and work with the best lending team. Any ideas or thoughts appreciated. Right now I have a sheet for each property with all of the key information and then a summery of all 5 properties. I include, Loan to Value, Cash on Cash. What else would you like to see if you were a loan officer?
Standard paperwork you know and love, and one spreadsheet that has each property in a row and the particulars (loan balance, rent, 2nd mortgage(s), etc) in the columns. Each will have their own process, roll with it.
FYI: Best lending team for a real estate investor will not necessarily have the best rate. Of the business I get from bigger pockets, a significant amount is from people that just got burned and lost their $20,000 earnest money deposit after failing to close on a house. It takes a lot of years for my $14 per month higher interest rate to add up to $20,000. None of the CFPB-required disclosures require lenders to disclose what percentage of loans they actually close, and what percent they deny 3 days before scheduled closing after all contingencies have been lifted. Talk to any real estate agent about that.
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John Acheson
Renter · Las Vegas, NV · Member since 2018 · 278 posts · 71 votes
7y
Brian, thinking big really quick, I would say a few 800 FICOs ready to personally guarantee and a few to five seasoned LLCs each with a D&B PAYDEX of 80 or more would get you the most financing you want at the lowest possible rates assuming you meet the income requirements. But this is just my personal MBA opinion and I'm not licensed.
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Eric Veronica
Lender · Cleveland, OH · Member since 2011 · 587 posts · 435 votes
7y
@Brian Holt if you have owned the existing rentals for the last few years then tax returns will tell most of the story. If the previous year tax returns do not reflect the full year of rents received then you can provide the leases as well. If the properties are financed and the mortgage payments include tax and insurance escrow then you will want to include a mortgage statement.
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Stephanie MedellinBusiness Member
Mortgage Broker · CA · Member since 2014 · 1k+ posts · 642 votes
7y
@Brian Holt I would take:
- Last two years tax returns with W2s, including schedule E's with the rental property information.
- Last 30 days pay stubs
- Last 2 months bank statements
- Property Taxes, insurance, lease amounts, HOA statement, and current mortgage statement for each property
I don't know that coming prepared will get you a better rate than you otherwise would have, but it will certainly help you get a more accurate rate because it will be based on more accurate information.
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Brian Holt
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Investor · Spanish Fork, UT · Member since 2016 · 4 posts · 2 votes
7y
Thanks for the replies and ideas! I agree that the best lending team may not have the best rate but provide a lot of other benefits. The tax returns are critical (I forgot those... Thanks for the reminder). Stephanie that is a great point that coming prepared may not get a better rate, but like you mentioned it will help get a more accurate rate and hopefully help the loan officer enjoy working with me because they have most everything they will need. Thanks for the responses so far!
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Stephanie MedellinBusiness Member
Mortgage Broker · CA · Member since 2014 · 1k+ posts · 642 votes
7y
@Brian Holt Yes your loan officer will definitely appreciate that you came prepared!
[email protected]
Stephanie Medellin, Loan Factory58 Reviews
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