Starting the Pre-Approval Process (2-4 Units)Apr 20, 2021
How do you start the pre-approval process, and how long does it take?
If you're looking to invest with the Fourplex Investment Group (FIG), our preferred lender can send you an email that has instructions for filling out our online application. The email will include a link to that application, as well as the list of financials needed which can be uploaded into a secure portal within the online application.
The list of documents is pretty generic. We've gone into more detail about the required documents for pre-approval in another post. Some of these documents change if you're self-employed, so make note of that as you go through the application. Things can also change if you have purchased or sold other properties within the last 12 months.
Once the mortgage lender has submitted everything you have requested, the turnaround for your response is pretty quick (2-3 business days, sometimes sooner).
The multi-family lender will review your financials, take a look at debt to income ratios, purchasing power, ability to qualify, etc. Then you'll receive a phone call to let you know how things look as far as qualifying goes for your construction loan.
It's a bit of a dynamic process because if you're self-employed, we have to look at it and say, how is your income trending? Does it look like everything would be okay for securing a long-term loan when that time comes?
We'll review all of those factors and make sure everything looks good for financing and pre-approval. It's dynamic in the sense that there are two transactions taking place in a build-to-rent purchase.
A year under construction is a long time. You might have a job change, you may move to a new primary residence, or you may have to retire some vehicles or purchase new ones. If those happen, that's okay, that's life. You're not financially locked down for a 12-month build period. However, if things do come up, we need to discuss it.
Let your lender know that you're going to be moving and what your new payment is going to be on your primary residence. If you're switching out vehicles, all of that is fine, just give us a call beforehand. That way we can make sure you have a solid game plan to make sure your long-term loan looks great as well.