Hooray! After much consideration and planning, you are growing your real estate investment portfolio..
While researching properties, serious investors should consider the necessary items to start the mortgage pre-approval process.
Lendmarq can help! Potential buyers need five essential documents to begin the process. We’ll outline a detailed checklist of what you need to know before your appointment with us.
1. Loan Application
It’s the first step in the process. First-time borrowers at Lendmarq fill out a full application. This is not too hard, but it captures information that is important to make a quick and easy credit decision. Repeat borrowers fill out a more simple application and high volume borrowers fill out a blanket Tier 1 borrower application that we keep on file so you never have to fill out an app again! The initial application also covers your real estate experience. High experience borrowers require smaller down payments and get lower rates!
2. Proof of Liquidity
Bank statements and investment account statements are necessary to prove that you have funds for the down payment and closing costs and some reserves. Your down payment will depend on the type of loan that you have, your experience, and your credit score but verifying cash is important. Remember those Tier 1 borrowers we introduced, bank statements are often not required anymore! Only upon request for some annual reviews.
3. Purchase Contract and Rehab Budget
We primarily focus on the property and the project. If the loan is for a fix and flip or a construction loan, we would want the rehab budget to come along with the purchase contract so we can understand the scope of the project. Light rehabs are different than heavy rehabs, and we will always explain clearly what we are dealing with along the way, but we want to understand the deal to give accurate quotes!
4. Entity Documents
All of Lendmarq’s loans are business purpose loans. We do not lend to individuals for their primary residence or second homes. So borrowers must have a business entity established to hold title to the investment property. Need help setting up? Let us know!
5. Additional Documents
It really is just about as easy as explained. We are built for speed, and do not kill our borrowers with death by papercut. We may ask for additional documents based on loan type or complexity, but we clearly explain what and why and do not wait until closing is approaching before figuring things out! We will also ask for contact information for your preferred vendors. Insurance contacts, appraisal access contacts, and title insurance contacts. We will handle everything for you and work with your preferred vendors to get things done quickly and efficiently.