Did you know that today, there are more self-employed borrowers than ever before? Maybe you’ve noticed that trend with the many loan scenarios you work through each day. Bank statement loans can quickly and easily help borrowers qualify based on their actual income, instead of what shows up on their tax returns. Non-traditional borrowers, like business owners, the self-employed and high-commission sales workers, have always had challenges documenting income. At LendSure, we have the answers that can help you say “yes” to these scenarios, time and time again.
When you’re researching solutions for your clients, you may run across non-QM loans and equate that option with “subprime,” but they simply aren’t the same thing. Bank statement loans are a type of non-QM loan that can offer the perfect solution to creditworthy buyers that may have trouble documenting their income. With non-QM solutions becoming more mainstream, it is important to understand how programs like bank statement loans can be a valuable solution for a growing number of borrowers in today’s financial landscape. It’s time to discover what these types of loans can do for your borrowers and your bottom line.
This process doesn’t have to be tricky to navigate. Here at LendSure, we specialize in non-QM, and we’re here to help you. Our highly experienced loan management team knows the non-traditional mortgage process inside and out. Working extensively with bank statement loans and many other types of non-QM loans, LendSure lends in over 40 states and is continually expanding throughout the United States. We guide mortgage professionals like you through the non-QM loan process, ensuring the right product fit for each client.
Have a difficult client situation or a tough loan question? Give us a call. We’re all about streamlined processes and a commonsense approach to qualification. We’re dedicated to helping you learn about all the ways non-QM can benefit your borrowers and help you grow your business.
Who are bank statement loans designed for?
Self-employed homebuyers often have trouble documenting their income, but by taking a closer look at an individual’s bank statements, a better picture of the borrower’s financial situation can be seen. As a matter of fact, these borrowers are usually in very good financial shape. By examining bank statements, we quickly determine true income figures for a borrower, allowing us to easily determine a debt ratio figure. That leads to a solid number that both the borrower and lender can work with to ensure prequalification and, ultimately, a successful loan close.
You probably work with many clients who are self-employed and fall into categories such as insurance agents, contractors, plumbers, attorneys, doctors, CPAs, cosmetologists and even property investors, just to name a few. Many of these borrowers possess sizable wealth, but need to demonstrate income in a different way than traditional W-2 borrowers, who can exhibit income with pay stubs and tax returns.
How does it work?
The bank statement loan process begins with a bank statement analysis conducted by a highly experienced LendSure underwriter. This is a time-saver for brokers who can entrust us to conduct timely and accurate income analysis. The bank statement review process can take as little as 24 hours.
What about prequalification?
Every time you pick up the phone, you may hear an unusual tale, since every borrower is an individual with unique circumstances. We always strive to find the best loan solution for every creditworthy borrower’s varying circumstance by building commonsense loan solutions. After analyzing all pieces of the financial data that tells their story, we gather two, 12 or 24 months of bank statements to start building a file that gives us the bigger picture. A self-employment questionnaire helps us determine expense factors and reach a final debt-to-income (DTI) ratio. Most other lenders have fixed expense factors, but LendSure does not. We examine actual expenses based on the questionnaire and determine the DTI ratio from there.
Through every step of this process, we won’t leave you in the dark. You’ll hear from our friendly, hard-working team often. After gathering all necessary information, our detail-oriented underwriters perform a thorough analysis to determine income. With the clock ticking, it’s very important for us to complete this task quickly and accurately.
LendSure does not use a set expense factor when calculating income for self-employed borrowers, because we know that number can vary greatly based on the type of business and a number of other factors. This is just one more way we bring common sense to the lending process. LendSure’s exclusive pre-underwriting process goes beyond a simple prequalification. Our experienced, in-house professionals review each submission and quickly provide decisions and pricing, usually within 24 hours. Careful attention to detail during this process minimizes surprises down the road.
What do lenders look for in bank statement borrowers?
While bank statement borrowers are considered by some to be unusual or non-traditional, they actually make up a large portion of the borrower market today. As you seek solutions for your borrowers and add the non-QM process to your arsenal as a solution for your clients, it’s important to understand what lenders are looking for when qualifying these types of individuals for loans.
One of the most important things lenders will look for in bank statements are consistent deposits each month. This can be in a personal or business bank account, and some bank statement borrowers submit a combination of both. Many bank statement programs are the same, but LendSure does not require the borrower to be a 100% owner of their business. However, the longer a business has been open and established, the more comfortably a borrower can be qualified.
One thing that makes LendSure loans different is that profit and loss (P&L) statements are not required for our 12- and 24-month bank statement loan programs. P&L analysis can be very frustrating for the borrower, the mortgage broker, and the lender because many questions tend to arise, and numbers frequently don’t match up. LendSure finds alternate means to secure documentation and data needed to provide the best solutions for each borrower.
LendSure’s new two-month bank statement [A1] product does require P&L statements, but this offering is for self-employed borrowers who want an easier, more streamlined closing process. Guidelines are tighter than our 12- and 24-month programs, but we can walk you through the process if this is the correct fit for your borrowers.
Ensuring mortgage broker partner success
At LendSure, we know not all loans are traditional loans that follow a simple, cookie-cutter process. A large and continuously growing portion of the job market consists of individuals who are self-employed borrowers or are in distinct circumstances that require non-traditional loan products. We empower our network of partner mortgage brokers to offer customized solutions to borrowers of any type. With ongoing education, matchless support, a common-sense approach to the numbers and a careful look at the details, LendSure guides brokers through the sometimes-confusing world of non-QM loans.
Non-QM products don’t have to be complicated when you work with the right partner. Bank statement loan qualification may take a few extra steps, but LendSure guides brokers like you through each step of the process. We know you’re working fast and furious and always looking to grow your business, but sometimes a little help is needed. Whether you need guidance on bridge loans, assistance working through the bank statement loan process, help with investment property loans or are simply looking to expand your product offerings, LendSure can help. We’ll help you say “yes” to more clients, flesh out marketing opportunities, expand your business and grow your bottom line.
Getting started with LendSure
You do not need to be an approved broker to discuss and review your loan scenarios with LendSure. Simply call us and we will connect you with a LendSure Account Executive. Prior to loan funding, brokers do need to be approved by our Broker Approval Department. In the meantime, you can submit loan documents by requesting a temporary code to the LendSure TPO Portal or by securely emailing documents directly to your LendSure Account Executive. Visit our broker approval page on our website to learn more about the approval process.
Why should you work with LendSure?
We want to make your job easier. LendSure has a different way of gathering data, prequalifying, and providing the best pricing options. We are innovative in our approach to refinancing for currently owned properties. Our prequalification team is always honest and upfront about process challenges, and we can sign off on approved exceptions quickly and with ease. All the heavy lifting is done up front to minimize surprises down the road.
One way we’re able to move faster and fund more loans is through our teams of region-specific underwriters and account managers. Our underwriters and team members are in constant communication with our mortgage brokers, answering questions, discussing challenges, and ensuring that the process moves forward as efficiently as possible.
The LendSure Way
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers and ratios and data to consider, but we know that behind every file, there’s an individual with a unique circumstance seeking a loan. We work hard to offer our commonsense-take on lending to self-employed borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio or refinancing of a currently-owned property.
Are you ready to grow your business? Conventional loan approval guidelines can be restrictive, but we want to offer our mortgage broker partners the education, the tools, support and the guidance they need in order to say “yes” to more of their clients. This ensures happy borrowers and opportunities for bottom line growth. What are you waiting for? Let’s get started!
Are you ready to benefit from a commonsense approach to lending? Contact us today to learn more about self-employed borrowers, non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.