Buying a home is a major decision for anyone no matter how you choose to fund the purchase, but if you are looking outside of the traditional mortgage options, you might run into even more questions. We at First Financial Bank in Worthington, Ohio want to make sure you have all the information you need to move forward with the process. Whether you are self-employed or simply don’t want to do the route of conventional financing, we would like to discuss your options with bank statement loans today.
Is It Right For Me?
If you have been in the market to purchase a home and researching options, you still may not have considered a bank statement loan as they are not as popular as conventional financing. Many people do not know this type of mortgage is available to them, so they simply don’t even seek out the option.
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.
How Do I 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 want to work with, 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.
Once you have all your financial information submitted, the underwriting process begins and you will find out if you are approved, declined, or need to make adjustments. The actual underwriter will begin to fully begin getting your mortgage completed if you are approved which can take some time. If you are self-employed, the underwriting process can be complicated when it comes to getting you qualified because lenders only consider taxable income.
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.
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 Bill Lavelle at First Financial Bank in Worthington, Ohio today!