Preparing to Shop for Bank Statement Home Loans in Houston? Find Out The Tips Here
Real Estate 367

Preparing to Shop for Bank Statement Home Loans in Houston? Find Out The Tips Here

Preparing to Shop for Bank Statement Home Loans in Houston? Find Out The Tips Here

Has anyone questioned your purchasing power before? For borrowers, their ability to present tax documents and pay stubs confers a mortgage. However, the self-employed buyers undergo a different process, and they may lack the provision of submitting the pay stubs. This little hindrance does not stop them from filling a mortgage application because 12 bank statement loans are a legitimate option.

As long as a future homeowner is willing to submit professional and personal bank statements, he/she is good to go. So, you can guess your fate of owning a home depends on the past 12 bank statements. Of course, you can sense the anxiety and confusion, but do not worry. Thousands of people apply for bank statement home loans in Houston, and their experience turns out to be fine. As you are already under pressure for buying the first time home, a handful of tips can help you go a long way. So, let’s read over the common tips for a bank statement home loan in Houston.

Don’t Forget to Make a Budget

Qualifying for a bank statement loan is not the hardest part. On the other side, being able to afford the monthly payments can be hard, sometimes. You can have stellar credit scores and face foreclosures at the same time. Know how much you can afford and look at your debt-to-income ratio. DTI ratio is the income that you are going to spend per month against the debts. You can follow a smart strategy and not spend 28% of income on the loan payment. Additionally, your debts should not cross 36% of income, either.

Save for at least 10% Down Payment

If you are not expecting a promotion and do not have debts, you can steadily save down payment. In this way, you can make a large down payment without a fuss. Nowadays, private lenders do not add mortgage insurance with a 10% down payment. So, the choice is yours.

Prepare for the Paperwork

Missing documents at the last moment can be a potential reason for delaying the process further. Even if you find a favorable deal and helpful lender, paperwork can become a hindrance. Make sure you have 12 months of personal or business bank statements. Besides this, you need to prove 2 years of self-employment. Don’t forget to furnish citizenship-related documents if required.

Pick the Right Lender to Work With

When you are aware of what you want, start looking for a lender. Meanwhile, you need to look at other things before choosing the ideal lender. Borrowers also need to shortlist the loan officers who have a good reputation and a strong understanding of the bank statement loan process. Also, a professional who is willing to offer a good deal can be your match. There are other things to check beyond the interest rates – look for points, lenders fees, and closing costs.

There is nothing that can assure – the bank statement loan process will surely run flawlessly. But preparation can limit potential obstacles. So, find a lender who can get you need.

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