Do you manage your money responsibly? If you know the financial weaknesses that are deal breakers for lenders, you can strengthen your chances of being given a loan. Mortgage lenders are trained to spot financial mismanagement, and they carefully review your application to decide whether to approve or deny you a home loan—your transaction history is critical for bank statement loans.
Lenders look for a variety of things to determine whether you manage your money responsibly. The main role of a lender in approving bank statement mortgages is to ensure that the loan applicant has sufficient funds to make a down payment, pay closing costs, and assess whether the applicant is able to make the monthly payments. Since they get most of this information from your bank statement, you should ensure that all your records are straightforward to increase your chances of getting bank statement mortgage loans.
Why your spending history is critical to getting your loan approved
Information Extracted from Your Bank Statement
Below are the two main reasons why non-qm mortgage lenders check your bank statements before approving or denying your bank statement loans.