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Important
Mortgage Application Documents
Checklist for Your Landlord Mortgages
Dealing
with mortgage lenders and getting your hands on landlord
mortgages
can
actually be quick and painless as long as you turn up prepared
with the right mortgage application documents. Our mortgage application
checklist below will make applying for your landlord mortgages an
absolute breeze.
So what are
the essential paperwork that you will have to prepare for your mortgage
loan?
Estimate
of Your Rental Income
Since
your rental property is basically an investment, your lenders will be
highly interested in its cash flow. If your rental property already has
tenants living in it, then make sure that a copy of the rent receipt
(with the rent amount stated) is included among your mortgage
application documents.
If the rental property that you are eyeing does not currently have any
tenants, you should look for a
qualified real estate professional and ask him to prepare a written
estimate of the rent payments that your property can fetch.
Most lenders will require your monthly rental income to be at least
125% of the monthly landlord mortgage payments.
This
is to ensure you will have enough money to pay
your mortgage payments
every month after deducting the expenses of maintaining
your property such as repair costs and utility bills.
Records
of Your Salary and Earnings
Your salary and earning power is also an important factor to lenders
when you apply for a property loan. That's why
every mortgage application checklist should include recent records of
your pay slips,
income tax statements and bank account statements.
Most
lenders will require your personal earnings to be at least 3
times that
of
your monthly mortgage payments. This is to make sure that you will have
enough
money to continue paying your mortgage payments in case your rental
income
dips or your tenant leaves.
Your
Credit Report and Debt History
Your credit report is another must-have document in your mortgage
application checklist. This credit report will reveal how much debts
you owe and whether you have
been paying them on time. It will include loans such as home mortgage,
car instalments and credit card bills.
Lenders will always
prefer someone with high credit scores. This means that you
are not bogged down with too much debt and have been paying
up
your loans on time. If you have an excellent credit history, mortgage
lenders will be queuing up at your doorstep to offer you mortgage loans.
Do you want
quick and easy ways to raise your credit scores? Click here to learn how
to boost credit scores for your rental property mortgage.
Naturally if you have an excellent credit
score, you should negotiate with your mortgage lender for a property
loan with lower interest and more generous terms.
Other Mortgage
Application Documents
When
applying for landlord mortgages, your mortgage application checklist
should also include your driver's license, identification
card and social
security card. These mortgage application documents are required to
confirm your personal particulars.
If
you are divorced, you will also have to show lenders your
settlement
documents stating how much money you are paying or receiving for
alimony and child support. The duration of your payments will also be
important as it affects your long term cash flow.
If you have a
history of bankruptcy or loan defaults, you are usually required by law
to disclose the details when applying for your landlord mortgages.
Want to learn more practical must-know facts on
rental property mortgages?
Return
from
this Landlord Mortgages page to our Financing
Investment Properties
guide
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