Why is a mortgage specialist better than a bank? Part 4: bank statement loans!

When I started this series (see 1, 2, and 3 here), I thought only of how to differentiate the skill set, or the person. But then it struck me, the key to this explanation is for you to see the main difference between the two: access to more options. And we all know more options equals more opportunities to get you into the home loan you are looking for.

So let’s start with the most obvious of all: Bank Statement Loans

Every single customer when I was a banker thought that it mattered that they were an account holder, or deposit customer, when it came time to get a loan. This thought is so ingrained that sometimes self-employed individuals, in particular, would mention the thousands they were running through their account each month. They thought this was a positive point. But sadly, the bank doesn’t care.

A lot of self employed individuals also think that those deposits should count towards their income. Not at a bank, they still ask for 2 years of taxes.

Now, how is a mortgage specialist better?

1. Bank statement loans – private lenders offer bank statement loans. In simplest of terms, the lender uses your deposit history over 12 or 24 months (most common, there are even shorter!) as your proof of income. This substitutes for taxes! There are additional requirements and more money down and a higher rate than a conventional or government loan, but this can open the door to a LOT more self employed borrowers!
2. There are additional options including a conventional loan product with ONE year of business taxes (you have to be in business for 5 years), and other options that some banks just don’t have.

Whether you are self employed or not, there are advantages of having more loan options. But if you are self employed in particular, you must seek out a true mortgage professional and not a bank if you want to get all the best mortgage loan options including bank statement loans.