Buying a bank statement home loan is not a headache anymore in Houston. But there can be a shift in your stress levels if you commit the common mistakes. As you know bank statement mortgages are the ultimate solution to every freelancer willing to achieve homeownership soon. The conventional loans turn their face away the moment they spot a self-employed person. However, the self-employed people can unlock great loan benefits with only 550 credits.
From buying an approved condo to a townhouse, the bank statement home loans in Houston are indeed helpful. Make sure you have evidence of being employed or registered licensed. Additionally, you need to submit personal or business bank statements for 12 months. Qualifying for the loan program is not exactly strenuous, but you should think and act wisely during the process. Let’s have a look at a few mistakes almost every borrower makes for a bank statement home loan in Houston.
Mistake #1: Spending every penny on a mortgage
After paying down the business loan, you are in a stable position. But there is one goal that needs to be ticked off – your own place. Owning a house does not also mean that you have no other future endeavors. So, it would be a futile move to spend your savings on a mortgage.
When you are a homeowner, there will be more responsibilities on your plate. Before committing, check whether you can afford it. Otherwise, you will be in financial trouble. Whether it is home improvement or renovation, the money will be the minimum requirement. Spending every penny on a single mortgage indicates that you are not ready to be a homeowner yet.
Mistake #2: Putting a dent on credit while processing the loan
There is one thing every lender hates to see at the end of the loan process. Many buyers make the mistake of spending big right before closing. When you are in the middle of a loan process, you cannot consider buying an auto loan.
The lender checks credit score before closing, and any concern might slow down the process. After all, potential things can change since the time the lender reviewed the credit. Especially when the borrower adds a new debt, the whole mortgage goes under scrutiny. From missed payments to an outstanding balance, the lender checks everything before the final step.
Mistake #3: Shopping for a home before a loan
When borrowers are willing to buy a house, they make the mistake of deciding on the house, at first. The budget is key to success, and this situation is no different. Because of your employment nature or credit score, you may not close the loan amount you have been wishing. If you finalized the house before the loan, this would be a disappointing situation. Also, you need to figure out whether you can put down 10% or 20% of the bank statement mortgage value.
As long as you remember these tips, you can easily dodge the bullet. Ask the lender if you have inquiries about the mortgage.