Selling Yourself as a Proper Borrower
Even if a relative has been generous in her offer and claims she's willing to loan you money based on character alone, it's wise to make this a formal arrangement. That's why it's a good idea to set up a second meeting in which specific terms can be discussed. Be prepared to show them every piece of information you would show a commercial lender. That includes the following:
A net-worth statement showing your and your spouse's assets and liabilities
A copy of your latest W2 forms
Any divorce decrees to document any divorce-related liabilities or child-support payment amounts
A copy of your settlement information from any bankruptcy you or your spouse might have filed
Again, this shouldn't be so formal a meeting that it doesn't feel comfortable, but if you hope to borrow money, you need to convince your lender that you will be a responsible borrower. It's really the borrower's responsibility to pay the loan according to terms and to make sure the relationship is cared for.
