speed up the approval process and increase approvals

[Derek Cavanaugh]

While many here are experienced investors and probably know a lot of this I am hoping some of this basic information will help new investors get off to a better start when seeking funding.

Personal Information

Always have ready- last NOA showing no taxes owed, if using commission, bonus, overtime income, or are business for self 2 years NOA so an average can be used.

Collections should be paid off, if a previous bankruptcy occured have your paperwork ready.

Credit utilizations plays a major role in your credit score and your ability to get funded. Revolving credit below 35,% of your limit is ideal.

Networth- have an up to date networth statement include vehicle, investments, properties, recreational vehicles, household goods and furnishings, whole life insurance cash value policies.

If dealing with a private lender a clearly defined exit strategy from their loan is extremely important

When seeking credit be careful about multiple credit pulls. Too many credit pulls will effect your score. A lender should be able to talk through a deal without needing to immediately pull credit. Know your credit score and while free apps are ok I suggest going directly to Equifax. You can print and pass it in to a lender to avoid an immediate pull. They will need to pull credit eventually though.

Property information

Always have the tax assessment and if possible a real estate agents letter of opinion ready, I have seen several deals approved this way avoiding the costs and time of an appraisal.

Improvements- Quotes will always carry more weight than estimates.

Rental Income Have research done market value rents if the intent is to hold the property.

Flips- make sure your time lines are reasonable budgets should always show a contingency budget. Things like average time on market for the area helps as well.

If any project is declined be sure you understand the reason for the decline. It may help you shape your project for the next lender.

There are benefits to having a relationship with your bank and a broker. Both should accept that they aren't always the right answer.

Use a consistent team of real estate agents lawyers ,lenders , home inspectors , insurance agents, and appraiser. Being familiar with the team can make the job easier.

If anyone else has some suggestions to add I would love to see them. Happy hunting!