Are you concerned about being able to qualify for a mortgage using traditional underwriting? Do you own your own business or are you self-employed? A bank statement loan may be the best program to finance your home. Bank statement loans use your bank statements and other records to verify your ability to repay the mortgage. If you lack W-2s or tax statements that can accurately reflect your financial standing, then this loan may be your ticket to owning a home. This week, Stonebriar Mortgage helps Dallas, TX and California homebuyers understand this unique mortgage product.
Preparing to Apply for a Bank Statement Loan
The best way to start preparing for your bank statement loan application is to meet with your accountant and gather documentation of your income, assets, debts, and businesses owned. Print out records and bank statements for the past few years, or as requested by the lender. Your tax records, credit score, and housing history may also be used to validate your application.
Qualifying for a Bank Statement Loan
Your employment record, business history, and business plans or market studies may also be helpful in predicting your ability to repay a bank statement loan. Depending on the size of mortgage you seek, a 20% or larger down payment may be requested. Good credit will also help your case; some say 680 or above is standard. Profit and loss statements and tax records of your personal or business finances are also useful in helping you qualify. Essentially, the lender is trying to project what income you will have to repay your loan—so anything you can offer is helpful.
Why Some People Choose to Use a Bank Statement Loan
People who invest heavily in real estate or other businesses for their income often use bank statement loans. If you are someone who likes to fix and flip properties, you may have unusual income patters or large debts. Income may be sporadic, or seasonal. However, you can offset this debt with the assets you own. In this is the case, you may not qualify for a more traditional mortgage program. The lender will use bank statements over a period to analyze and predict what you will be able to handle in your financial future. If you are retired, then you may have to show how your retirement and investment income will help you pay off a bank statement loan.
Stonebriar Mortgage works with a diverse array of customers to secure homes through bank statement loans. Sit down with your accountant and gather your financial history in order to get ready to search for a home. Our staff are interested in helping Dallas, TX or California customers accomplish their financial goals, contact our office today!