Entity Documents Tip - The Key to Seamless Financing!
Today, I want to shed some light on the often-overlooked heroes of the financing world – your entity documents. Trust me; they can make all the difference when it comes to closing smoothly on your property.
TOOLS & TIPS
3/11/20241 min read
Why do they matter?
1. Articles of Incorporation: These are like your property's birth certificate. They establish your corporation and its basic details, ensuring you're recognized as a legit player in the game.
2. EIN (Employer Identification Number): Think of it as your entity's ssn number. It's crucial for tax filings and helps lenders verify your entity's identity.
3. Operating Agreement: This is your property playbook, outlining how your entity operates. It's not just a formality; it proves you have a solid structure in place.
4. Certificate of Good Standing: Like a real estate golden ticket, this certificate shows your entity is in good standing with the state – a must-have for lenders.
Why the Dates Matter:
Ensuring that the dates on your entity documents align correctly is the secret sauce for a smooth closing. This alignment means your entity has a consistent and clear history, reducing the need for additional documents like tax returns or shareholder certificates. It's like having your paperwork in perfect harmony.
What Can Go Wrong?
Imagine submitting documents with mismatched dates. It's like having a puzzle piece that just doesn't fit. This misalignment might trigger red flags and requests for extra documents, causing delays in your financing process.
Keep those entity documents up to date, aligned, and sailing in the same direction. It streamlines your financing and also sets you up for a simple closing.
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