Purchasing a home generally starts with researching funding in most cases. If you are looking for funding as an investor, you may have already discovered bank statement mortgage loans, but they are not as popular with first time buyers or people looking to purchase a home for themselves, although they can be used for that purpose as well.
For those who are self-employed, this would probably be the first option they would consider when purchasing a home. 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.
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.
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.
Things To Consider
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 loan. 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.
Call Us 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 assist you in answering any questions you may have so don’t hesitate to reach out to KC Investor Funding in Missouri and Kansas today!