Are you needing a bank statement loan in California? There are 2 very important things to consider. Can you be approved with simply your business bank statement or your personal bank statements. In California, can use this type of loan for a single family residence, 2nd home, vacation home, 2-4 unit properties. Now, there is quite a few pitfalls when determining your income. Note: Do NOT allow your documents to be submitted before you have each and every income determined. For these bank statement loans in California, the underwriter will review “each” ledger to determine the following:
- Was there a big check entered? A home sale? If so, need the HUD1.
- Was there are refund? (Can’t count it!)
- Was there money given to you and not traceable? (Most likely will not be counted for bank statement loans California)
The main point. Make sure your bank statement loan has been reviewed properly.
Now once the “income” is completely realized, then have your credit pulled to determine the next phase on the bank statement loan process. The DTI (debt to income) needs to be figured out. The DTI will determine quite a few things actually. It’ll first determine if you will qualify. Second is what Interest Rate adjustments will take place. After you know your DTI, and of course you will know your FICO score, you are ready to have your appraisal done. Insider tip: Don’t have a appraisal done until you know that your DTI, FICO and LTV (Loan to Value) is fully understood.
Qualifying for a Bank Statement Loan California
To qualify, we have made a helpful document that you can use during the bank statement loan process. Keep in mind, while in the loan process, do NOT purchase any large item, e.g., car, etc., because it can drastically influence your DTI and also the underwriters perception of the loan.