If you are going to a bank to get financing it is very important to present yourself and the property in the best light possible.
Don't lie. For example, don't say you are going to live there if you are not. Credibility is important. Although a small lie might help you get financing this time, it could be a big problem the next time you go in for a loan. Building a relationship with people who can lend you money is important if you are going to be getting into real estate investing.
All this also applies if you are getting a mortgage refinance or second mortgage.
Three Tips for Obtaining Financing
Have a Business Plan
Knowing why you are buying this property and what you plan to do with it is important.- Why are you buying the property? Are you using this house for shelter? Investment? Income? See Goals of Real Estate Investing. The bank will want to know your intentions.
- Holding period - long or short term. Are you in this for a quick flip or are you going to hold on to it to get equity and appreciation.
Develop an Exit Strategy
How are you going to get your money out?- Sale?, Refinance?, Change of Use? (e.g. condo conversion)
- Rental Income?
- The lender wants to know how they will get paid back.
Packaging and Marketing
Make sure you present yourself and the property in the best light possible. Think aboout how to present the following things:- The property
- Age
- Physical condition
- Market condition
- Photos
- Opportunities - e.g improvement to the house
- Disclose everything - for credibility, they will find out anyway
- You
- Explain who the borrowers are - the team
- Know your partners
- Disclose any credit issues - credibilty
- Look like you know what you are doing
- Dress professionally