Refinancing a dream home using bank statements.

Client background: The clients, a self-employed couple, have successfully operated their business for fifteen years. Their entrepreneurial journey has led them to realize their dream of building a $1.5 million home. Despite their robust business history, one of the clients lacked credit history, posing a potential challenge in traditional mortgage approval processes. However, they had no outstanding debts, reflecting their financial prudence.

Objective: Refinance their newly built dream home to settle payments with the builder and inject additional capital into their business.

Approach: Our expert BDM collaborated closely with the broker to prepare a tailored solution. Recognizing the unique circumstances of self-employed individuals, a 30-year amortization plan was proposed, and our bank statement approach was used to validate income.

Key steps:

1. In-depth analysis:
   1. Our BDM conducted a comprehensive review of the client’s financial profile, considering their business longevity and credit situation.
2. Customized solution:
   1. Given their self-employed status and the desire to demonstrate income without traditional payslips, we recommended utilizing bank statements as evidence. This approach aligned with our commitment to flexibility in mortgage solutions.
3. Documentation request:
   1. We requested 12 months of bank statements to substantiate their income, ensuring transparency and accuracy in the refinancing process.
4. Collaborative partnership:
   1. Throughout the process, our underwriter collaborated closely with the broker, providing guidance and support at every stage to streamline the deal.

Outcome: Despite the one client lacking credit history, our bank statement program proved instrumental in securing approval for the refinancing. The clients were able to settle payments with the builder promptly and inject additional capital into their business, further fueling their retirement plan. The 30-year amortization provided them with flexibility and peace of mind, aligning perfectly with their long-term financial goals.

Conclusion: This successful deal exemplifies our expertise in catering to the unique needs of self-employed individuals. By leveraging solutions such as our bank statement program and offering personalized guidance, we empower brokers to confidently serve their self-employed clients. For similar opportunities, brokers are encouraged to engage with their dedicated BDM to explore tailored solutions and unlock new possibilities for their client’s financial success.