Financing properties…
It feels like I am having a bit of a finance week over here at NCRE. You’ve had a YouTube video about it and you will be getting a podcast about it on Tuesday too! It’s the thing that has been on the top of my to do list whether for me or for my clients.
To be honest, it is a great thing being involved in this because it means I’m constantly keeping up with the changes. As much as there are more options when it comes to financing properties there is also a HUGE number of questions that comes with it. This blog is all about keeping you in the loop for what you COULD be asked, so that you aren’t surprised when it happens.
Don’t be surprised,be prepared. These are some of the questions you may be asked… It’s our pleasure
Information you will be required to have:
- Passport photo-page or driving license
- Posted address ID received within the last 3 months – i.e. bills
- 3 months’ payslips and most recent P60 if you’re employed
- 3 years’ trading accounts if you’re self-employed
- 6 months’ bank statements showing your income coming in and the general running of your finances (FOR ALL ACCOUNTS THAT YOU USE)
- Evidence of the source of your deposit
- An up to date credit report for both borrowers. This can be obtained for free from checkmyfile.com
Phew… and then once you’ve got all that then you are also required to take this a step further.
Getting these documents can all seems like a big pain, but regulation is regulation. One thing at a time… and you’ll be on your way
Additional research on the property you want to buy:
- Any details/particulars for the property
- Evidence of your research to back up the GDV [end value]
- Schedule of works – In a basic format just indicating the basic stages of the project with timings and costs
- A breakdown of the full development costs including works and fees [but excluding finance costs]
- A summary of your experience in this field
- If you’ve already set up a Ltd co to hold the property, the details of the company
Getting all the documents together and ready to be presented can seem daunting
It’s a lot hey! But, actually I think that it is an awesome idea on behalf of the lenders. It really shows commitment on your side as the borrower. If you can put together all of this info and be certain of it then you are more of a suitable borrower than if you couldn’t be bothered with it.
It’s a two way street- part of the reason you’re asked for all this info is to show that a lender can trust you
This is the stuff we teach in our program. We make sure that all of our Landlords and Investors are equipped to answer these questions by the time they go and get funding. They know how to calculate the end value. How to do the schedule of works. And if they don’t have as much experience, being on our program and coached by myself and the team gives them that experience that they can go and tell the lenders they have.
I make sure that our clients can get funding. It’s a staple because that’s the only way you will be able to expand your portfolio efficiently!
