If you want brownie points feel free to bring to the meeting:3 most recent pay stubs2 years of complete Federal tax returns (all pages)2 years of W-2 tax returns2 months of bank statements (all pages)Explanations for any deposits on those bank statements which weren't payroll/salaryAnd if you have extra time on your hands this weekend and want super duper brownie points, you could start working on the detailed listing of income, expenses, assets and liabilities on a version of the Uniform Residential Loan Application.Or you could just go to the meeting and let her/him tell you what they want and need from you :)

Most sophisticated investors, even if they can, are not paying off their entire loans.

I just move from a market with many sophisticated buyers, a place where the 1% of the 1% buy, and it was not unusual for them to request to withhold the sales price.  

Do not over-sophisticate this!  

Having said all that, a lot of horror stories about property destruction and tenants not paying their portion of the rent particularly from less sophisticated landlords.

The rates on 401k loans are very low and normally she will pay them directly from her payroll. 

In other words, some may take a more sophisticated approach on their own, but they may not be required to as a private individual. 

Anything is will be for more sophisticated uses.

I dont see why you would have to place yourself on payroll to qualify for a loan if you are a sole member of the entity.

People with high FICO scores, etc etc are financially sophisticated individuals.