September 30, 2014
This is part 3 of a series in How to Submit Your Loan Information for an Apartment Loan.
We began the series by explaining that when you send your apartment loan information to a lender, you need to send it in the form of a good presentation. The information needs to be presented in such a way that you sell the lender on giving you a loan. Specifically you want the lender to see that the strengths of your property and the strengths of your finances are sufficient for a loan.
In part 1, we discussed the area of submitting good interior and exterior property photos. These photos honestly present your property, but also show the property in an attractive way. In part 2, we discussed the importance of presenting your property description in a manner that can inspire a lender to lend on your property. Be sure to include features such as hardwood floors, new roof, recent updates, great views, etc.
Today’s article is on presenting a strong enough financial picture to qualify for an apartment loan. Of course, if you have a weak financial picture, you will not qualify for a high quality apartment loan. In this case, you would need to improve your financial picture, which might include raising your credit scores, having a higher net-worth, having this year’s tax returns completed, etc.
The items needed for a strong financial picture are primarily your credit report, personal financial statement, and tax returns. Other items are often requested along the way such as bank statements.
For your credit report, as a guide, 680 is the minimum credit score you need. This is based on the average of the three credit bureaus. Also, if you have lots of credit card debt, you may need to lower it before you qualify.
Concerning your personal financial statement, as a guide, your net-worth needs to be the size of the loan. Also, you need enough liquidity to cover the down payment, loan expenses and reserves.
For tax returns, you may not be required to submit them depending on the loan source. In working with us (ApartmentLoanStore.com) , many times, our customers are not asked to submit tax returns because they are not required. If you are required to submit tax returns, most importantly, you must be current in your filing.
Call or email me if you have questions concerning this article, apartment loans or other types of commercial loans. You can reach me at 214-695-7310 and firstname.lastname@example.org
Bruce Painter, Director of Marketing, Business Loan Store