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How does M&T Bank verify rental income?

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If you own a rental property or multiple properties (first off, way to go, that's thinking ahead!), you're certainly able to go through the mortgage application process. M&T Bank works with owners of multiple rental properties just like any other prospective borrower, and all we'll need to do is several hundred seconds of income verification. The difference is that we'll review the Schedule E of your annual tax return to Uncle Sam to determine your rental income after expenses. Depreciation won't be counted against your rental income.

If you haven't yet owned the rental property for an entire tax year, we'll go about verifying income by reviewing copies of the lease (or leases), and then we'll estimate how much it costs you to keep the properties going. A positive income flow is the way to go.

If you're losing money on the properties, either because you've been spending a ton on upgrades or there's something else going on, this isn't a deal-breaker. If you can still demonstrate your other income is regular and robust enough to meet monthly payments, we're all good.

Be sure to keep track of your income and expenses carefully, not only for your annual income taxes but also for the loans you might want to take out in the future.