Life As A Landlord – The Approval Process

 

 

This is part of an ongoing series about how I became the owner of a rental property in Florida while living in Utah, and all the adventures I have had along the way. If you’re just joining me now, you can check out the first installments here:

Yesterday I started telling you the beginning of my story about how I came to own a rental property in Florida. Today I’ll continue that story and this is where it starts to get really fun…

So I pressed forward with the deal and started getting all the info together that the investment company needed to qualify me for the loan. This was allย  the same information that you would need to get a residential home loan; income documentation, credit report, employer info, work history, all that good stuff to show what an upstanding citizen I was.

I turned that all over to the investment company and a couple days later, they said that I would qualify but they would still have to go through the steps with the bank to get the loan. I didn’t realize it, but at this point, the investment company already had a house picked out for me. All the homes that were part of this deal were pretty standard; 3-4 bedroom, 2 bath, 1000+ square footage, blue collar neighborhood. My property was in a decent neighborhood with a school nearby and already had a tenant with a good payment history.

The Waiting…

After I turned in my paperwork, I didn’t hear from the company for a couple of weeks. I figured something threw a red flag and I wasn’t going to qualify. I had already taken a laid-back approach to the whole thing so I didn’t mind either way. C’est la vie right?

Then I got the call. Good news! I was fully qualified, approved and the process could move forward…little did I know that this process in my case would last almost six months!

I got a call the next week or so and was told that there was some problem with the application and I’d need to send over some more paperwork. This new paperwork was just some more stuff on income. I got the faxes, filled them out and faxed them back. I was self-employed a few years prior to this and when I we bought the home we live in, that threw up some red flags and delayed the process, but we actually were able to close on our home in just under a month. The investment company at that point let me know everything was in order and things would proceed.

Then I got another call. This time, they told me that my credit report was showing information that wasn’t consistent and I needed to verify some loans I had. My first thought was that my identity had been stolen or something. The loans in question were school loans. If any of you have ever had school loans, they change hands just about as often as the wind changes direction. Companies buy school loans from one another all the time and because of all this, the bank or investment company (I lost track after a while) thought that I had sever dozens of loans from different companies, totaling some absurd amount like $150,000.

I was only half way through my degree program at that point and wasn’t planning on graduating into the medical field. This was a mistake.

So the dance continued. The bank would ask for new documents and I’d send them over. They would flip out because things didn’t match up, I’d try to explain why they didn’t match up and they would quiet down for a while. The next week I’d be right back where I started with them.

Finally, I got the call saying that everything was in order, for real this time, and the next part of the process would begin, what the investment company called down-payment assistance

Meanwhile, talk of trouble on Wall-Street started coming over the airwaves and looking back, I can see exactly why…

Check back tomorrow to see what comes next in the story

Image byย anandham

If you liked this, please subscribe to my triweekly updates via RSS or Email. Thank you!

Tags: , , , , ,

4 People have left comments on this post



» Kevin @ Thousandaire.comNo Gravatar said: { Mar 23, 2011 - 08:03:01 }

I love this idea to make a story into a series of posts. ๐Ÿ™‚

[Reply]

Jesse MichelsenNo Gravatar Reply:

Glad you like it! If I put all this in one post, no one would ever read it ๐Ÿ™‚

[Reply]

» ScottNo Gravatar said: { Mar 23, 2011 - 02:03:05 }

I am enjoying these articles thus far. I am curious of the details on how this panned out for you.

[Reply]

Jesse MichelsenNo Gravatar Reply:

Glad you’re enjoying them. I’ve got most of the rest of the story written out so that’s what I’ll be covering all next week. I hope the ending doesn’t disappoint ๐Ÿ™‚

[Reply]



 
css.php