The fact that you work for yourself can present some challenges when you want to finance any type of purchase. That includes buying a vehicle or purchasing a home. Before attempting to work things out with a traditional lender, consider looking into what bank statement loans for self-employed people can accomplish. Here are a few basics about this particular loan option.
What Is a Bank Statement Loan?
A bank statement loan is a lending arrangement that does not require the presentation of tax returns or W2 forms. Instead, your bank statements are used as proof of your income. Many lenders will ask to review several bank statements as a way to confirm that your revenue stream is consistent.
Keep in mind lenders are not interested in how many checks or debit card transactions you make in any given 30-day period. What they focus on is the cumulative total of the deposits made during each statement cycle. Assuming you collect enough revenue during each period to meet the lender’s minimum standards, you may be eligible for a loan.
What Qualifications Must I Meet?
Along with proof of your income, lenders offering bank statement loans for self-employed people require applicants to meet other qualifications. Your credit score must be above a certain figure. The current debt to income ratio must be within an acceptable range. Being current on all of your obligations is also something that the lender will require.
Remember that this type of lending arrangement is not a sub-prime or bad credit loan. Depending on your income and credit status, you can expect terms and conditions that equal or are close to the rates offered with more traditional loans.
Will Processing the Application Take Long?
The amount of time needed to process applications for bank statement loans for self-employed people is similar to the time required to process a loan application from someone who works for another entity. Depending on the practices and procedures the lender has in place, you could have an answer the same day or at least within three working days.
Would a bank statement loan help you achieve one of your goals? If so, call the Moreira Team today and learn more about this type of lending option. If you meet our qualifications, the money could be yours in less time than you thought possible.
