Documentation of Assets and Rental Income
Earlier in the book, you heard me use the term degree of documentation. This simply means how far the lender will go to verify the information you put on your loan application.
This is important because each lower degree of documentation can either require you to put more of your own money into the transaction or increase your interest rate (which could affect your approval), or a combination of both.
Before we go any further, this does not mean that you can lie on your application up to a certain point; instead, it means what type of loan you can get approved for based upon the loan requirements being presented.
For instance, a conventional loan could require verification of rental income from ...