subject: Speeding Up The Loan Process For A Tenant To Buy Real Estate [print this page] It's important for a prospective tenant buyer to be pre-approved for their home loans. And the best way to do that is through proper documentation. If you can get a few key documents to a loan officer, chances are good that the would-be client can be pre-approved.
The documents should be simple enough to obtain. The prospective borrower and co-borrower need to provide two weeks of pay stubs, along with two years of W2 forms. If the borrowers are self-employed, they just need to supply tax returns.
Generally speaking, the fastest way to get the documents to the loan officer is to fax them. They can also be sent by overnight mail, but, typically, the loan officer prefers to have the documents faxed. It's important for you to find out which loan officer approved the client, so you can obtain background information on the potential tenant buyer.
In some cases, the tenant buyer may be working with his or her own mortgage company. The advantage of such an approach is that it shows that the tenant buyer is proactive and eager to buy a home. People may not be knowledgeable about the loan process, so they want to go with a loan officer who has already taken a look at their credit report. It makes the process simpler, since they know the loan officer from the start. They can open the lines of communication, so they know exactly where they stand at every point in the loan application process.
If a company that is recruiting tenant buyers does a large volume of business, it is important that it does not overload small loan companies. You can really bog down the lenders if you give them too much work to process.
The loan application process can seem tedious for both the company and the tenant buyer. However, it is absolutely necessary to ensure that a deal is secured. By obtaining the proper documentation from the prospective client, getting the information to the loan officer in a timely manner, and doing all you can to move the process along, you can ensure that the process runs smoothly. And that's a win/win situation for both you and the tenant buyer. The important thing is to remain in close contact with both the loan officer and the tenant buyer. By paying close attention to detail, you can avoid a number of costly mistakes that would result in sabotaging your deal.
