How to prepare your financing file for funding?

get the right advisor for your real estate investment

Once the negotiations passed with your broker, this is what happens and you will have to make sure you are ready for it? How to prepare your record of funding? What are the requested documents? Simple questions to anticipate upon signing the deal!

We always prefer the stages of negotiation than paperwork stages. But what comes next is equally important and should not be overlooked. This will certainly prevent you from finding yourself in a compromising situation 2 weeks from the deadlines stipulated in your deal clauses to conclude your finance contract.

These steps and items that you will be asked must therefore be anticipated as soon as possible and no later than shortly after the signature of the deal.

Key steps to consider

To properly consider the thing, here is a presentation of the key steps once an agreement reached with your advisor being the bank or the dealer.

Your broker will search for you nearest agency you or your place of work, given that a dynamic agency is preferred.

A number of supporting documents will be asked to justify your situation.

Once your entitlement is full, your advisor will alert the real estate agency that the record has been deposited in the bank.

Your case then switches to the director of the banking agency associate, who shall give his decision.
Once the bank grants the loan, they will make a financing offer and send it to you by mail for signature. This offer may not be accepted in a legal deadline of 10 days. Once accepted and signed, you must return it to the Bank.

The Bank will transform the supply of finance that will be sent to the notary to prepare the case for the final sign.

Find your tenant before signing!

finding tenants when investing in real estateRecently, I experienced one of the many issues that real estate investors are facing: a bank saying no at the very last moment, a broker that turns his back. In short, when you are back to square one. In the meantime, my future apartment may not go back on the market for rent and also may not longer be what I hope it will be.

Solution?

A few days ago my broker who I had been without news for a while called me: ‘I’m sorry but the bank finally refused to grant the loan. In a two weeks time frame the bank makes tells me NO and the broker has nothing to offer… Back to square one, after a month of hard bargaining, with as a result a month of offset to get the keys.

You should know that I had significantly reduced my expectations. So the signing was scheduled over a 3 weeks period… I returned with a month in addition to offset to obtain the keys…

Market not helping

The situation was even more critical as in some cities, the prices on the market are significantly higher at this time of the year.

I have therefore called my real estate agent to explain the situation, the offset of the date of signature, a terminating clause, etc. This is what I suggested:

  • Start by marketing the offer on the Internet.
  • Find the tenant before signing and even having the keys.

Result: we went to this solution, and 2 weeks after I had my future tenant! 🙂

Conclusion: do not wait to have the key to find your tenant! And don’t you miss twice as me, the tenant will not appreciate it!

© Graydon Manor