Although it isnвЂ™t required, checking your credit is a good first step toward buying a home. HereвЂ™s how the process works and the steps you should take to get prepared to purchase or refinance a home. The mortgage process for a bank statement mortgage is similar to the process of a traditional home loan.

How is this Mortgage Process Different than a Traditional Home Loan? ThatвЂ™s why some lenders call these bank statement mortgage loans. They use bank statements to verify income instead of tax returns with these types of mortgages. Lenders still want to make sure borrowers can repay their mortgages. Lenders offer nonqualified mortgages to help address this issue. Lenders recognize that tax returns may not be the best way to measure borrowersвЂ™ income. This lowers their tax burden and makes their income look lower than it is. This is because self-employed borrowers usually deduct business expenses. Tax returns may not reflect a self-employed personвЂ™s actual income. One of these rules is that they must verify income, and they use tax returns to do that. Lenders are required to follow the rules set by the Consumer Financial Protection Bureau (CFPB) when they offer borrowers qualified mortgages. This means these mortgages have a limit on points and fees and legal protections for the lenders. Why Would a Lender not Require a Tax Return? When youвЂ™re ready, sign the paperwork and get the keys to your new home. Ask questions about anything that isnвЂ™t clear. If one lender isnвЂ™t promising, contact another one.Д«e persistent and read your loan offers carefully. Talk to lenders and be upfront about your needs. Self-employed borrowers can qualify for traditional mortgages, but it can be more of a challenge. If you donвЂ™t deduct a lot of business expenses, you might want to explore all your options. If your income is seasonal or erratic, it might help. If your taxable income is significantly lower than your gross annual income, a bank statement mortgage might help.

Lenders may be able to help you determine whether a no tax return mortgage is right for you. Is a No Tax Return Mortgage Right for You?

Fake bank statement for mortgage