How deep can home loan vendors go?

[PandaBear]

Originally Posted By: brianl703
I refi'd my rental property back in Dec 2009. All they wanted was the usual two paystubs and copies of my bank statements.

I suspect that the reason they didn't go very deep is:

1)I'm not over-leveraged. The total amount I pay on my two houses is such that I could afford both even if the rental property sat vacant.

2)My credit score is very good--over 800.

3)I actually have some money saved in the bank--it's obvious from my bank statements that I am not living "paycheck to paycheck".


The problem with Pablo's business partner is his K1 (business income) and the loan originator dig deeper into this income. You do not have a business, so they didn't ask much.

 

[brianl703]

Had my regular (non-rental) income not been sufficient to cover the mortgage payments on the rental property, I know that they would have asked for proof of income on the rental property (my tax return, most likely).

I do stand corrected--they did want the last two years W2 statements in addition to the paystubs.

It probably also helped that I wasn't upside-down on the rental property. It appraised well above what the loan amount was for.

 

[bigmike]

I got a mortgage loan in July of 2009. It was a mess of hoop jumping. I even had to pay off a vehicle for them to approve it.