When applying for a Bank Statement Loan, it’s important to understand that Non-QM lenders require a Business Description as part of the underwriting process. Whether submitting for pre-qualification or full underwriting, lenders will request a detailed summary of your business.
Some lenders refer to this as a Business Narrative or Business Summary. Below are the key components typically required by lenders in 2024.
Business Profile & Ownership Details
Owner Name(s):
Business Address(es):
Property Type: (Office, Home-Based, Warehouse, etc.)
Number of Employees:
Full-Time:
Part-Time:
Contractors:
Percentage of Ownership:
Years in Business:
Business Operations & Revenue Model
Type of Business: (Service-Based, Product-Based, Retail, etc.
Service-Based Business: If you provide a service, describe the nature of your services.
Manufacturing Business: If you produce goods, explain the manufacturing process.
Retail or Resale Business: If you buy and resell products, specify the sourcing and sales process.
Banking Details: Do you use multiple bank accounts for business income? If so, explain how funds are managed.
Business Income & Loan Structuring
Providing a clear and concise business description helps your loan officer structure your loan application efficiently. Accurate documentation improves approval chances, reduces underwriting conditions, and speeds up the funding process.