Applying for an Investment Property Loan? 3 Documents You'll Need


If you have decided that you need to apply for a commercial loan for an investment property that you are seeking to purchase, then you need to ensure that you have all of the necessary documents for this application process. Without these documents, you may run into significant setbacks, such as the lender denying financing until they receive those documents.

There are numerous documents that you may need, and each lender is different. Learn more about three of the most important documents that you will need to submit to a lending institution when applying for an investment property loan.

Rent Roll

One of the most important documents that you will require when applying for any kind commercial mortgage loan is the current rent roll. This document will include the unit number, rent per unit, tenant name, start and end date of the lease, square footage, number of beds and baths, market rent, garage, laundry, and other income. The rent roll will also show whether there are any current vacancies, in addition to the total income for the property.

Prior Years' Income Statement

Another important document that will be necessary to submit to the lender is the past several years of income statements, as well as a year-to-date document. These documents will provide the lender with the information that they need regarding the amount of revenue the property generates as well as the operating costs. In addition, the document shows the amount of a loan that you are looking to—or need to—secure for the property.

Summary of the Investment Property

Last, but not least, you will also need a document that details a summary of the investment property that you are hoping to secure financing for. This document will provide the lender with important information regarding the condition of the property, any recent improvements that have been made as well as improvements that you want to make in the foreseeable future and up-to-date photos of  the property. If possible, you may want to submit digital images to the lender since these may be easier to access.

These documents, as well as any others that your lender deems fit, will help you ensure that your investment property loan is approved as quickly as possible. As soon as you are ready to get the financing ball rolling for an investment property, contact a local financial institution in your local area for more information.


7 June 2019

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