How easy is it to get a bank statement loan?
Depending on your credit score, it may be easy or difficult to receive a bank statement loan. The good thing about talking to professionals like those at Internet Loans Direct is that they can guide you on what type of mortgage you qualify for with your current credit score. If your current credit score is low, they can also give you tips on how to repair your credit so you get the best mortgage available.
You also need a decent debt-to-income ratio or DTI. Anything higher than 55% decreases your chances of being accepted for the loan significantly. Another thing lenders look for is how stable your income is.
If you’ve had a sudden change in income in the last two months, you must be prepared to explain why. It is also a smart idea to look out for overdrafts. Overdrafts occur when someone withdraws or spends more money than they have in their account. This will be a big red flag to lenders and will most likely result in a rejection.
Lastly, you will need enough cash or liquefiable assets to cover several months of payments. Make sure to do research on what certain banks require or expect before applying for a bank statement loan with them.
What banks offer a bank statement loan?
Some banks that offer bank statement loans are Cross Country Mortgage and The First National Bank of America. Cross Country Mortgage requires 24 month personal bank statements only and are available in every state. They do not have a set minimum credit score, but require good or excellent credit and have a DTI requirement of at most 50%.
The First National Bank of America offers both 12 month personal and business bank statements, have no minimum loan amount, and require a DTI of at most 55%. They are available to lend in most states. Researching banks that take bank statement loans is pivotal in finding the best loan option for you.
How do I access my bank statement?
To access your bank statement to apply for a loan, you must first sign in to your online bank account. Then, look for terms like “services,” “‘bank statement,” etc to find where the bank puts their electronic statements. Select the 12 month or 24 month bank statement period you want to view. Save the PDF statement in a secure location and print it when you’re ready to apply for the bank statement loan.
Most banks have you sign a document stating that you agree to go paper-free and to receive all information online so if you have a preference for receiving paper documents, it may be difficult to access your bank statement that way.
How do I find the best bank statement mortgage loan?
When you buy a home or any type of real estate, you may need a mortgage loan. Bank statement loans can also help with this. Many banks offer bank statement mortgage loan programs designed for home buyers who are self-employed borrowers and who typically have substantial tax write-offs that make it difficult to provide proof that allows the mortgage lender to verify their income.
When looking for the right bank statement mortgage loan program for you, the research is very similar to regular bank statement loans with a few additions. In addition to 12 month vs 24 month bank statement requirements, DTI maximums and credit score minimums, you must also research how long the rates are fixed and how much of the company you must own for both business and personal bank statements before signing on with the home loan.
Bank statement loans may be the best option for you if you cannot provide the necessary proof to verify your income. Researching what certain programs require is the most effective way to find the loan that works best for your financial and professional situation.