Have you ever heard of the 12-bank statement mortgage program? If you are a freelancer or self-employed person, this home loan is what you need. Banks and credit unions doubt the purchasing power of people without a full-time job. On the other hand, private lenders can help you with this home loan program. Whether you have a personal or business account, you can apply for the loan program while you are in Houston.
If you can submit twelve months of consecutive business or personal statements, you are already one inch closer to the loan program. Along with it, the bank statement home loans in Houston ask you for self-employment evidence. When you are willing to purchase the loan, it must be for a primary residency. With at least 550 credit scores in your profile, you can pass the pre-approval stage. Before you meet the requirements, you must learn how to prepare for a home loan.
The article further explains the best ways you can manage your way through the bank statement mortgage. Let’s have a look at the necessary tips now.
Get Your Credit Report in Order
As you must follow the footsteps of the lender, the first thing you should do is check the credit report. It is important to monitor your credit for gathering information about your financial situation. Regular credit monitoring is the best way to kick off the process. When you can ensure you are creditworthy, a lender can get hold of the best interest rates. You also would want to make sure your credit score is as accurate as possible. The credit report agencies often receive complaints about wrong entries. Besides this, you can find out whether you have been a victim of fraudulent activities. These issues harm your scores, so check before applying for a bank statement home loan in Houston.
Know the Budget
An online mortgage calculator is an ideal way to find your budget. The results lead you to the amount you can afford. If you know what you can afford, the pressure is low. This helps you figure out how much you must save for closing costs and down payment. For instance, when a calculator shows you can afford $250,000, you must prepare for a minimum down payment of $12,500. On the other hand, the closing costs are around $5,000 or $7,000. The mortgage calculations differ on a large scale, and the estimate solely depends on your home price, loan term, down payment, and other factors. Of course, this is only an estimated number. You need to discuss with the mortgage lender for finding out how much you can land.
The Bottom Line
The process of home buying might move fast; however, you cannot rush away. Purchasing a house is a huge financial decision in your life. You can take calculated steps and do not rush. When you rush into it, you might miss out on important things. So, take your time and prepare for bank statement home loans in Houston.
