How can you get Bank Statement Home Loans in Houston? Read below to know the requirements of getting home loans.
Bank statement loans are available to self-employed persons who want to buy a new house. They no longer need to utilize tax returns with this option. They can, however, submit proof of income to the lender. Bank Statement Home Loans in Houston are usually always available to those who can demonstrate their ability to repay their debts. The most typical categories of persons that apply for this form of loan are freelancers, entrepreneurs, and small company owners.
A Good Credit Rating
Depending on the lender, a credit score as low as 500 may be sufficient. Others demand a credit score of 620 or above to be eligible for bank statement loans. It is your job as a borrower to obtain a decent credit score, regardless of whether the financial institution demands a higher or lower credit score. However, keep in mind that the higher your credit score, the more likely you are to get accepted for a loan.
Proof of Earnings
This should be the first thing you look for. Clients can choose from a variety of bank statement mortgage loan packages offered by financial institutions:
- Bank Statements for the Previous 12 Months — This loan would require bank statements for the previous 12 months.
- Bank Statements for the Previous 24 Months — This loan will require bank statements for the previous 24 months.
Some institutions additionally provide a 1-month bank statement, which just requires you to produce your most recent bank statement for the previous month. Determine how much you truly require to determine which form of loan you should apply for.
When applying for bank statement loans, you will be given paperwork to fill out. You’ll also need to collect the following essentials:
- Card of Social Security
- Valid identity cards, such as a driver’s license, are required.
- If you have any assets, such as a retirement plan or funds, you should get home insurance.
- A copy of your business permit or license may be required for persons who own enterprises.
Finding out how much you’ll need to save for a down payment is a crucial step in the home-buying process. This would also be determined by the lender as well as your credit score. However, down payments often vary from 10% to 30%. Once you’ve been authorized for the loan, the financial institution will send you the rest of the paperwork you’ll need to complete the transaction.