GimmeSumCredit Posted July 21, 2023 Share Posted July 21, 2023 As most rentals do, I tend to post losses on my properties per my tax return (Interest, taxes, insurance, op ex, etc). Are these numbers ever asked for in the app process? Since I have several properties, I would assume I would need to show tax returns to show P&L, otherwise my debt would appear to high on DTI. Typically for mortgages they add back a certain amount of PITI and depreciation from your schedule C to qualify for another mortgage. What does the process look like for cars? Bonus question: If I have a 100k car on order that is 1 year out and I've always owned cars in cash, what are the chances I won't be able to be approved due to no auto loan history? FICO 760, gross income 150+ (mostly W2), DTI would be in the 40% range with the new car (depending on what the solution is to the above issue) Quote Link to comment Share on other sites More sharing options...
Admin MarvBear Posted July 21, 2023 Admin Share Posted July 21, 2023 Since you have several properties does that mean you have several mortgages? Quote Link to comment Share on other sites More sharing options...
GimmeSumCredit Posted July 21, 2023 Author Share Posted July 21, 2023 6 minutes ago, MarvBear said: Since you have several properties does that mean you have several mortgages? Yes Quote Link to comment Share on other sites More sharing options...
Admin MarvBear Posted July 21, 2023 Admin Share Posted July 21, 2023 Is your stated income sufficient to service the debt shown on your credit file(s)? Quote Link to comment Share on other sites More sharing options...
GimmeSumCredit Posted July 21, 2023 Author Share Posted July 21, 2023 Yes, all rentals are cash-flow positive but paper losses. DTI is relatively low. Quote Link to comment Share on other sites More sharing options...
Admin MarvBear Posted July 21, 2023 Admin Share Posted July 21, 2023 Based on the information in your posts I would believe you should be approvable. Quote Link to comment Share on other sites More sharing options...
GimmeSumCredit Posted July 22, 2023 Author Share Posted July 22, 2023 Can someone explain how banks would evaluate this situation? Quote Link to comment Share on other sites More sharing options...
Admin MarvBear Posted July 22, 2023 Admin Share Posted July 22, 2023 Yes, I would be happy to try. Just go into the pinned topics thread and cut and paste the Credit Application in this thread. Quote Link to comment Share on other sites More sharing options...
GimmeSumCredit Posted July 22, 2023 Author Share Posted July 22, 2023 Okay, will do. Also, let me know if you have an idea of what I should expect to put down as a down payment Quote Link to comment Share on other sites More sharing options...
Admin MarvBear Posted July 22, 2023 Admin Share Posted July 22, 2023 1 hour ago, GimmeSumCredit said: Okay, will do. Also, let me know if you have an idea of what I should expect to put down as a down payment You can tell me th amount of the down payment in the application you submit. Quote Link to comment Share on other sites More sharing options...
GimmeSumCredit Posted July 22, 2023 Author Share Posted July 22, 2023 Your Age: Your Equifax Credit Score:750 Your Experian Credit Score:752 Your TransUnion Credit Score:760 How long have you been on file with the CRA?s? - Never Previous Automotive Credit History: - N/A - Never financed a car Do you have an open auto loan? Will this loan be a trade-in? Number of late pays within the last 12 months on the currently open loan? Number of late pays within the last 13-24 months on the currently open loan? Current open auto loan is financed with? Current open auto loan payment is? Estimated amount you may be upside down in this vehicle? Rate your payment history on this open auto loan from 1-10 (10=BEST) I have read and understand the original pinned "No Credit Check Required" topic. - Yes Revolving Credit History: Total number of revolving accounts? - 10 Total percent utilization overall? - 4% Your Information: How long at residence? - 3.5 years Rent/Homeowner/Live with relative? - Own How long at current job? 1.5 years Total Provable MONTHLY GROSS INCOME? 125000 Provable via computerized paystub or what method? 80% from w2 paystub, 20% from 1099 Your Downpayment in CASH: Rebates not considered; Trade Equity not considered: CASH ONLY PLEASE INPUT. - 10k-30k Does any credit repository contain any Public Record? Is so, please describe. - No Does any credit repository contain any Collection Account(s) If so, please describe. - No New or Used Vehicle you are considering; please describe: New - Lotus Emira Your creditworthiness on a scale of 1-10 with 10 being the best: OVERALL credit: 10 Installment Credit History: No derogatory remarks Revolving Credit History: No derogatory remarks Quote Link to comment Share on other sites More sharing options...
Admin MarvBear Posted July 23, 2023 Admin Share Posted July 23, 2023 14 hours ago, GimmeSumCredit said: Your Age: You did not answer 14 hours ago, GimmeSumCredit said: How long have you been on file with the CRA?s? - Never If you have never been on file with the Credit Reporting Agencies, it would be impossible to have a FICO score. Your application would normally be withdrawn if you don't supply the requested information. Quote Link to comment Share on other sites More sharing options...
GimmeSumCredit Posted July 23, 2023 Author Share Posted July 23, 2023 Age: 29 CRAs: I wasn’t sure what that meant at first but I have accounts dating back to 2015 (8 years) Average age of credit is 3.8 Quote Link to comment Share on other sites More sharing options...
Admin MarvBear Posted July 23, 2023 Admin Share Posted July 23, 2023 What is the largest installment loan on any credit file, not including mortgages or student loans? Quote Link to comment Share on other sites More sharing options...
GimmeSumCredit Posted July 23, 2023 Author Share Posted July 23, 2023 2 hours ago, MarvBear said: What is the largest installment loan on any credit file, not including mortgages or student loans? $0. (N/A). The only reason I have 4% usage for revolving credit is because the credit snapshot is sometimes taken mid-month, but I do pay my revolving revolving credit off each month. Quote Link to comment Share on other sites More sharing options...
Admin MarvBear Posted July 23, 2023 Admin Share Posted July 23, 2023 A word of caution, or advice from an incredibly old bear. When dealing with an application don't offer information that was not requested. I believe you can be approved, but you may not like the terms that are available/offered. The automotive landscape has changed tremendously in the last 2-3 years, so who knows what marketplace conditions will be one year hence. Quote Link to comment Share on other sites More sharing options...
GimmeSumCredit Posted July 23, 2023 Author Share Posted July 23, 2023 1 hour ago, MarvBear said: A word of caution, or advice from an incredibly old bear. When dealing with an application don't offer information that was not requested. I believe you can be approved, but you may not like the terms that are available/offered. The automotive landscape has changed tremendously in the last 2-3 years, so who knows what marketplace conditions will be one year hence. Are there any factors that I can improve between now and then? Being that I am one year out. (Car is on order) Quote Link to comment Share on other sites More sharing options...
Admin MarvBear Posted July 25, 2023 Admin Share Posted July 25, 2023 Yes, I believe so. Save money for as large of a down payment as you cannot comfortably like. A lower Loan To Value number is always in your favor. Quote Link to comment Share on other sites More sharing options...
hoapres Posted July 30, 2023 Share Posted July 30, 2023 If you have an established relationship with a banking institution that holds multiple mortgages then you might want to talk to that financial institution to see what can be offered. I don't know the extent of your real estate holdings but it might be possible to write off the interest of the auto loan off your taxes should you be able to establish that the use of the auto is related to your business. Quote Link to comment Share on other sites More sharing options...
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