Documents Required for Pre-Approval (1-4 Units)Apr 06, 2021
What documents are needed to get pre-approved for a fourplex, triplex, or duplex?
If you've ever purchased real estate before, these underwriting reviews are very similar whether you're financing a primary residence, second home, or whether you're looking to finance 1-4 units for an investment property. The documentation requirements can be almost exactly the same because it's a very similar underwrite.
After you have your discussion with FIG's preferred lender, it'll be time to fill out an application to verify financing eligibility. At that point, you'll be sent a list of things that the lender will need in order to review financial eligibility.
Residential multifamily loans are Fannie Mae/Freddie Mac fixed loans. Whenever you purchase a primary residence, it's the same underwriting standards (looking at debt-to-income ratios and determining eligibility qualify).
- Our lender does a credit check to take a look at credit scores. This allows them to verify your debt to income ratios.
- All W-2 employees will need to submit W-2s for the most recent two years alongside their federal taxes and a most recent pay stub.
- If you're self-employed, according to mortgage guidelines, we would get a copy of your business tax returns for two years as well.
Business owners will also need to submit their business tax returns. Even if you own 25% or more of your company and you pay yourself a W-2, you're still self-employed. This allows us to go in and determine a two-year average of what your business income is (after expenses).
For the most part, that's all the things that we ask for. Our preferred lender has a secure online portal for you to send those electronically. We never ask for these documents over email.
If you feel that your situation is unique in any way, contact the FIG team here or reach out to our preferred lender here.