How Do I Approach The Lender? - Posted by Dave

import · January 20, 2003, 7:28pm

Posted by GMann on January 22, 2003 at 24:10:19:

You will only have to sign a few of the closing documents, but they will not ask any questions about you or your credit. If you aren’t on the application then they can’t ask you to be on it.

import · January 20, 2003, 7:28pm

Posted by Dave on January 20, 2003 at 20:28:40:

Hello:

I am a real estate agent who has found an investor/friend with good credit and who is also willing to put in the balance of the money needed to begin to purchase a number of rental properties. I will be contributing some cash, find, negotiate and write the contracts on the property as well as handle most aspects of prop. management… We will be equal partners, 50/50 split.

My question is this? Due to a rough couple of financial years because of extended medical difficulties with my wife our credit score has dramatically decreased.
(FICO about 560) (Partners FICO approx.720)

Because when I write the contract I will have to disclose that I will have ownership interest in the property, what is the best way to approach the lender as not to have a negative impact on terms and rates?

I know you don’t have enough details in this post to give a complete answer but from the above info. what kind of negative impact can we generally expect?

Any advice will be greatly appreciated!

Regards:
Dave

import · January 21, 2003, 11:25am

Re: How Do I Approach The Lender? - Posted by John VA

Posted by John VA on January 21, 2003 at 12:25:13:

Here’s a few tips: You don’t have to be on the loan to be on the title. IF you are using some of your money to purchase these properties, open an account with your partner and both deposit money in there, so that when the lender asks for bank statements to prove the assets are available, they show up on an account with his name, even if it isn’t necessarily all his money (best to show at least two months of history of money in the account). Where are you located? How long have you been an agent? Feel free to email me with any other questions.

import · January 21, 2003, 11:49am

Re: How Do I Approach The Lender? - Posted by Dave

Posted by Dave on January 21, 2003 at 12:49:26:

Thanks John and Tony for your replies!

One more quick question. If the lender sees my name on the contract as an owner won’t they also need to include me at some level on the loan or will they just process the partner.

Thanks Again:
Dave