Bank Statement Loans

Some might think it’s not possible to buy a home without a typical source of income, but that’s not true. Bank statement loans are a possibility for those who are self employed or in other specific circumstances who may not qualify with the typical route of financing. You will still need to provide documentation of your financial situation, but you may not need the detailed paperwork that was necessary years ago. For example, if you work more than one job, you could only need to provide documentation of the job that you’ll be using to qualify.

Qualifying for a Bank Statement Loan

The first step of the process is the same as with any other type of mortgage which is applying for the loan. You may want to shop around and discuss your options with different lenders to make sure you are working with a company that best suits your personal situation. Once you’ve found a lender, you’ll want to get all your financial information together to start the process. You’ll have to provide documentation of your income, debts and credit history in order to get approved.

The main thing a lender wants to confirm is that you are financially stable enough to pay back the loan as well as that the down payment is coming from a reliable source. You may be asked to provide additional information regarding the source of your down payment in certain situations. This can come from a friend or family member in a letter if they are the one giving you the funds.

The next thing you’ll have to do is submit your information to an underwriter to get your loan approved. They will be the one to actually write up the terms of the loan and may request additional information before getting your final approval. For this type of loan, the process can be a little more complicated because lenders only consider taxable income.

There are some positives that come with a bank statement loan that you may want to think about when making your decisions. First, you do not have to submit tax returns which can trip up many in the process when getting qualified if they are not a traditional W-4 employee. Another great thing about bank statement loans is they allow flexibility with the requirements and terms that are typical of traditional loans. It can be easier to get qualified with a bank statement loan even if you don’t have an exceptional credit score or debt to income ratio.

Reach Out Today!

Bank statement loans may not be well known but they can definitely help out those that may not show a traditional income but can fund a mortgage. We would be happy to help you answer any questions you might have about the process, so don’t hesitate to reach out to us at Commonwealth Mortgage Corp today!