Bank Statements

Bank statement loans are a type of loan that looks at your bank statements to decide if you qualify, rather than using traditional proof of income like pay stubs or tax forms. These loans are handy for people who work for themselves or have irregular incomes. Right Choice Home Loans is a trusted provider of bank statement loans, known for being reliable in the mortgage market.

Here’s what you need to know:

1. Qualifying with bank statements: Instead of showing pay stubs or tax returns, bank statement loans let you use your bank statements from the past 12 to 24 months to prove your income. This can be a big help for self-employed folks or small business owners who don’t have regular paychecks.
2. Cost considerations: Keep in mind that bank statement loans often come with higher interest rates and fees compared to regular loans. This is because lenders see them as riskier since they rely less on traditional income proof.
3. Down payment requirements: You might need a larger down payment for a bank statement loan compared to a regular loan. Lenders do this to protect themselves in case you can’t pay back the loan.
4. Credit score and eligibility: To get a bank statement loan, you usually need a good credit score. Lenders will also look at things like how much debt you have compared to your income.
5. Limited options: Not all lenders offer bank statement loans. That’s why it’s essential to find a reliable provider like Right Choice Home Loans. They specialize in these kinds of loans and can help you find the right fit for your needs.

In summary, bank statement loans can be a good option if you’re self-employed or have an irregular income. Just remember to consider the higher costs and make sure to work with a trusted professional like Right Choice Home Loans when exploring your options.