Learn how meeting these Georgia bank statement mortgage requirements can get you the lowest bank statement mortgage rate.
How lenders determine Georgia bank statement Loan Rates
- Credit Scores
The better your credit score is, the lower your interest rate will be. So, if your score is on the lower end (think 680 or under), then you might work on improving it before applying for a bank statement loan.
A few things to note: Mortgage lenders usually pull scores from all three credit bureaus, and then use the middle score when evaluating your risk as a borrower. If you’re applying with a spouse, they’ll take the lower of your two middle scores.
The bank statement loan lender will use the primary income earner middle credit score which must be the self-employed borrower. The co-borrower can be self-employed or a W-2 employee. Think twice about applying with a co-borrower who has a lower credit score. At the very least, pull their credit score first, as a low score can hurt your chances at a good rate. (In this case, you’d only want to include your spouse if you absolutely need their income to qualify for the loan.)
- Down Payment
Your credit score will impact what down payment you’ll need, as well as your interest rate. Generally, the lower your score is, the more you’ll need to put down.
Keep in mind though, regardless of score, a larger down payment can never hurt. When you put more down, it reduces the lenders risk, and the less risky your loan is the better your bank statement mortgage rate will be.
- Loan-to-Value Ratio
The LTV – or loan-to-value ratio of your mortgage – will also impact what rate you get on your bank statement loan. To calculate your LTV, you take your loan amount (how much you borrow for the house) and divide it by the home’s value.
So, if your loan is $500,000 and the home is worth $625,000, your LTV is 80% (500,000 / 625,000). Lower LTV’s will typically qualify for the lowest rates. Additionally, you’ll usually need 80% LTV or lower for the lowest Florida bank statement mortgage rates.
Buying - questions:
Georgia Bank statement mortgage lenders will ask these typical questions to determine an interest rate quote.
- Will this home be for primary occupancy? Yes/No
- Property type: Single family, Condo, Townhome, 2-4 Units
- Are you under contract to purchase? Yes/No
- What is the purchase price / What percentage for down payment
- Will you be the only applicant? Yes /No
- What are your credit scores? 760+/740/720/700/680 and below
- What type of business entity do you have? Corp/LLC/Sole proprietor
- Do you plan on using business or personal bank statements to qualify?
Refinancing - questions:
- Is this your primary occupied home?
- Property type: Single family, Condo, Townhome, 2-4 units
- What is the estimated property value?
- What loan amount are you seeking
- Will this refinance include cash-out Yes/No
- Will you be the only applicant? Yes/ No
- What are your credit scores? 760+/740/720/700/680 and below
- What type of business entity do you have? Corp/LLC/Sole proprietor
- Do you plan on using business or personal bank statements to qualify? Business/Personal
Get a fast pre-approval in just 24-48 hours
Know your rate and closing costs from the very start
Getting pre-approved for a Georgia bank statement loan can help you gauge what interest rate you can expect – as well as determine an appropriate price range to shop in. Ready to get pre-approved for your bank statement loan? reach out to HomeLife mortgage today.
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For more than 25 years, HomeLife Mortgage has built a strong reputation in California and Florida as a leading mortgage broker, servicing the needs of borrowers who have been unable to obtain conventional financing. HomeLife Mortgage is at the forefront of non-bank lending offering the next generation of mortgages including Jumbo Loans, Real Estate Investor Loans, and Bank Statement Loans.
