One of the things that borrowers don’t realize is that you can qualify for a mortgage with primarily your bank statements and credit score. You don’t even have to have a perfect credit score. if you keep your deposits consistent showing a constant flow of income through your bank account it’s easier for an underwriter to look at those deposits as your qualifying income. This qualifying income number can then be used to determine how much home you can afford. This is usually used for self-employed borrowers so if you don’t have traditional W-2 income with pay stubs we can take a look at your bank account and prepare it for use by putting consistent deposits through the account for a period of 12 to 24 months then leverage it for getting you a mortgage.
One of the questions that came up while working with one of our clients on their bank statements was about cash or check deposits. This was a good case study because we determined that as long as the deposits are fairly consistent and from similar sources that can be verified; Those deposits coming in every month can still be considered income. I would also suggest that you keep a record or a copy of those checks or deposit slips so that it can be leveraged as your full documentation of income at the time of qualifying for your mortgage.
There are some edge cases / unique scenarios where self-employed borrowers have been in business for over five years, their credit is in good shape, and they don’t have a lot of negative items on their credit, the underwriter will actually just take 12 months worth of bank statements as qualifying income. There are a lot of edge cases, a lot of unique scenarios that can be considered it just depends on your unique scenario. This is the main reason why loan officers like to see your documentation so we can get creative and come up with a funding strategy for you to get you the best deal for you.
If you don’t have traditional income and would like to leverage your bank statements as alternative documentation to qualify for a mortgage give us a call and let us see how we can help you get into your next property.